Independent drivers sue FedEx for benefits

| Monday, July 25, 2005

Independent truckers in at least five states are suing FedEx
Ground, saying the company is skirting federal worker-protection laws by
refusing to recognize them as employees who are entitled to full benefits.

According to the Indianapolis Star, FedEx officials
say their 14,000 independent drivers are not eligible for the benefits because
they’re independent contractors. Spokesman Perry Colosimo said FedEx Ground
uses the independent contractor system because it keeps FedEx customers’ costs
down and allows drivers to run their own businesses.

Christopher Gilreath, a lawyer for a group of Memphis
drivers who filed suit against FedEx in federal court last month says they’re
clearly employees – with the company controlling their hours, routes, truck
maintenance and how they dress.

The truckers are responsible for their own operating
expenses, but FedEx prohibits them from using their trucks to carry non-FedEx
shipments. They want to be reimbursed for back operating expenses and lost
benefits.

More than a dozen similar suits are in the works or already
filed around the country, The AP reported. The lawsuits involve small
groups of current or former drivers. Some plaintiffs have already sought class-action
status that could expand the reach of court rulings.

Last year, a California state court ruled that one category
of contract drivers for FedEx Ground should be treated as company employees.
FedEx has said it will appeal.

The labor fight could raise operating costs for FedEx Ground
by millions of dollars and lead to an overhaul of its work force.

FedEx Ground, headquartered in Pittsburgh, was created seven
years ago amid a reorganization of its parent company, which also owns FedEx
Express, the world’s largest cargo airline. The ground transportation unit
brought in almost $4.7 billion of FedEx Corporation’s $29.4 billion total for
the fiscal year that ended May 31. The operating income for FedEx Ground grew
16 percent to $604 million in fiscal 2005.